ETFs
5 Most Popular ETFs of the Last Week
In total, ETFs raised $12.8 billion in capital last week, bringing year-to-date inflows to $324.7 billion. U.S. fixed income ETFs led the way higher with $8.3 billion in inflows, followed by inflows of $1.8 billion in international equity ETFs and $1.8 billion in inflows. in currency ETFs.
Vanguard S&P 500 ETF VOO, iShares S&P 500 Growth ETF IVW, iShares Russell 2000 ETF IWM, Vanguard Total Stock Market ETF VTI and iShares MSCI EAFE Growth ETF EFG dominated the Best Creatives list last week.
Wall Street closed last week with gains. The tech-heavy Nasdaq Composite Index outperformed, rising 2.4%, while the S&P 500 and Dow Jones Industrial Average posted gains of 1.3% and 0.3%, respectively. Gains were driven by the technology boom, notably NVIDIA (NVDA). The chipmaker has surpassed Apple (AAPL) in market capitalization and become the second most valuable company in the United States (read: NVIDIA overtakes Apple: ETFs to exploit the incredible growth story).
Bets on a rate cut intensified last week following weak data, which signaled a slowdown in the world’s largest economy. U.S. manufacturing activity slowed for the second straight month in May, and U.S. construction spending unexpectedly fell for the second straight month in April due to declines in nonresidential activity.
However, a stronger jobs report and lower betting rates hope to end the week, driving Treasury yields higher. U.S. job growth jumped in May and wage growth accelerated. The economy added 272,000 jobs in May, above Bloomberg’s expectations of 185,000 jobs, reflecting continued strong hiring across a range of sectors.
We have detailed the ETFs below:
Vanguard S&P 500 ETF (VOO)
The Vanguard S&P 500 ETF dominated asset flow creation last week, amassing $11.9 billion in capital. It tracks the S&P 500 Index and holds 504 stocks in its basket, each representing no more than 7% of assets. The Vanguard S&P 500 ETF is heavily focused on the information technology sector, while the financial, healthcare, and consumer discretionary sectors round out the next three spots with a double-digit allocation each (read: ETFs should bet on analysts’ bullish forecasts for the S&P 500).
The Vanguard S&P 500 ETF charges investors 3 basis points in annual fees and trades an average daily volume of 4.4 million shares. It has $464 billion in assets under management and a Zacks ETF Rank #1 (Strong Buy) with a Medium Risk Outlook.
iShares S&P 500 Growth ETF (IVW)
The iShares S&P 500 Growth ETF has accumulated $3 billion in its asset base. It targets the growth segment of the S&P 500 Index by tracking the S&P 500 Growth Index. The iShares S&P 500 Growth ETF holds 228 stocks in its basket, with key holdings in Information Technology, Consumer discretion and communication. The iShares S&P 500 Growth ETF charges 18 basis points in annual fees and has amassed $50 billion in its asset base. The fund trades an average daily volume of 2 million shares and has a Zacks Rank #2 (Buy) with a Medium Risk Outlook (Read: 5 Multi-Trillion Dollar ETFs Beating the S&P 500 Since the Start of the year).
iShares Russell 2000 ETF (IWM)
The iShares Russell 2000 ETF has accumulated $1.8 billion in its asset base. It is the largest and most popular ETF in the small-cap space, with $60 billion in assets under management and an average daily volume of 26 million shares. The iShares Russell 2000 ETF has 1,937 well-diversified stocks in its basket and holds key holdings in the industrials, financials, healthcare, information technology and consumer discretionary sectors.
The iShares Russell 2000 ETF charges 19 basis points in annual fees and has a Zacks ETF Rank #2 with a Medium Risk Outlook.
Vanguard Total Stock Market ETF (VTI)
The Vanguard Total Stock Market ETF has raised $1.5 billion in capital. It provides exposure to the broader stock market by tracking the CRSP US Total Market Index. The Vanguard Total Stock Market ETF holds a broad basket of 3,719 well-diversified stocks with key holdings in the technology, consumer discretionary, industrials, healthcare and financial sectors.
The Vanguard Total Stock Market ETF charges investors 3 basis points in fees per year and trades an average daily volume of 3 million shares. VTI has amassed $401 billion in its asset base and has a Zacks Rank #2 ETF with a Medium Risk Outlook.
iShares MSCI EAFE Growth ETF (EFG)
The iShares MSCI EAFE Growth ETF raised $1.4 billion in capital, bringing its total assets under management to $13.9 billion. It provides exposure to a wide range of companies in Europe, Australia, Asia and the Far East whose earnings are expected to grow at a rate above the market average. The iShares MSCI EAFE Growth ETF tracks the MSCI EAFE Growth Index and holds 327 stocks in its basket. Japanese companies represent 22.1% of the portfolio, while France and the United Kingdom round out the next two places with double-digit exposure each.
The iShares MSCI EAFE Growth ETF charges 36 basis points in annual fees and trades an average daily volume of 323,000 shares. It has a Zacks ETF Rank #3 (Hold) with a Low Risk outlook.
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iShares Russell 2000 ETF (IWM): ETF Research Reports
Vanguard Total Stock Market ETF (VTI): ETF Research Reports
Vanguard S&P 500 ETF (VOO): ETF Research Reports
iShares S&P 500 Growth ETF (IVW): ETF Research Reports
iShares MSCI EAFE Growth ETF (EFG): ETF Research Reports